Two candidates are competing in the race for state controller, which is really a battle to see whether a Democrat or a Republican will guide the eighth-largest economy in the world.Watch report -- Commitment 2014: Race is on for the state controllerCalifornia’s controller serves as the state’s independent watchdog, the chief fiscal officer in charge of more than $100 billion in receipts and payouts of public funds.No incumbent is in the running, because the current officeholder, John Chiang, is up for state treasurer. Still, the race features two experienced elected officials with very different visions for California."And I think people are looking for outsiders," said Ashley Swearengin, the Republican mayor of Fresno.Swearengin cites her track record as a fiscal watchdog throughout the past six years, and talked about reviving Fresno from the brink of bankruptcy.“We had to be very aggressive in cutting expenses," Swearengin said. "We reduced our workforce by 25 percent. We partnered with nonprofits to have them do things that really they could do better than the city with more efficiency. We privatized some non-essential government services. And we just fought tooth and nail to keep our city out of bankruptcy."But when it comes to finances, Betty Yee, the Democrat, contends she’s the better candidate."I’d liken this office to the person who is minding the store," Yee said.Her focus would be on "protecting our tax dollars," Yee said.She is an elected member of the state Board of Equalization, serving the past 10 years as part of California’s tax commission.“I believe my experience with state-level finances is what’s needed for the controller," Yee said. "I have deep knowledge of tax policy. Deep knowledge of state budgeting, certainly with respect to state audits and the whole cash management of the job."And that job includes watching over California’s teacher retirement system – CalSTRS, which is deeply underfunded."We’re losing about $22 million a day," Yee said.But she told KCRA 3 she is confident that California is taking the right steps to tackle that deficit."My hat’s off to the Legislature and the governor for tackling that this year," Yee said. "Whereby, there is a new funding formula for how to address the unfunded liability over a three-decade period."But Yee admits that CalSTRS and CalPERS – the California Public Employee Retirement System -- need help.The controller serves on the board of both retirement funds. But is there enough money in the pension funds to pay all the benefits today?"No," Yee said. "Today, no. And that is really the work we need to work on. We have to take a long-term view on how to address these unfunded liabilities. We are a long-term investor. These benefits are not going to be paid out overnight."But Swearengin is critical of the people in charge of California’s pension funds."First of all, I disagree with the majority of the CalPERS board who voted just a few weeks back to undermine the pension reform that was put into place by the Legislature and the governor," Swearengin said. "So, I would have taken a different position on that issue. We have to be very intentional and aggressive to deal with pension spiking and other things that are contributing to $217 billion of unfunded liabilities in our pension system."It’s a complicated problem and it will not be easy, and I guarantee you that people will be mad at me if I’m elected state controller. I’m going to have a tough stand."But Yee countered that her state finance experience makes her uniquely qualified for the controller’s job.“I was a former state budget director and really understand the role of the controller’s office," she told KCRA 3. "Managing our cash situation every day – being sure that our revenues are coming in as projected. Being sure that we can pay our bills on time. Financial audits of state programs to call out any wasteful spending or misuse of state funds. And so, those are all areas that I have deep knowledge of."Swearengin countered, "I’ve been advocating a 90/10 budget plan. And what my proposal is that each year we go into the budget development process, we ought to be spending about 90 percent of our existing general fund revenues as paying for our existing obligations. And paying for today’s bills. But 10 percent of every general fund budget ought to be spent on paying things that help us in the future, paying down our unfunded liabilities."And if we maintain that kind of split without general fund revenues over the next 20 years, we absolutely could get out from underneath the enormous amounts of debt that we face today."One area the two candidates agree on is increasing transparency in state government – and to continue showing the salaries of government workers on the state controller’s website."All of these employees are supported by taxpayer dollars," Yee said. "And I think for taxpayers to understand where their dollars are going, obviously salaries are one key component of what taxpayers fund.""It’s an important step to make sure that people know we’re willing to be held to any standard," Swearengin said.She told KCRA 3 that if elected, she’ll rely on her independent judgment.”I evaluate every issue as it comes to me," Swearengin said. “I base my decisions on hard concrete data. I make that data available to the public and I take tough stands."Yee said if she’s elected, "One of my priorities will be how we can incorporate technology to really help us be more efficient with respect to serving as the state’s chief fiscal officer."The latest campaign finance records from the secretary of state show Swearengin has raised nearly $1 million, but she’s got just $214,000 left in the campaign war chest.Her biggest contribution came from Stamoules Produce in Mondota, California.Yee has raised just more than $1 million, with nearly $500,000 cash on hand.Her biggest contributor is the California Democratic Party, with a donation of $53,000, followed by four different unions.

SACRAMENTO, Calif. (KCRA) —

Two candidates are competing in the race for state controller, which is really a battle to see whether a Democrat or a Republican will guide the eighth-largest economy in the world.

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California’s controller serves as the state’s independent watchdog, the chief fiscal officer in charge of more than $100 billion in receipts and payouts of public funds.

No incumbent is in the running, because the current officeholder, John Chiang, is up for state treasurer. Still, the race features two experienced elected officials with very different visions for California.

"And I think people are looking for outsiders," said Ashley Swearengin, the Republican mayor of Fresno.

Swearengin cites her track record as a fiscal watchdog throughout the past six years, and talked about reviving Fresno from the brink of bankruptcy.

“We had to be very aggressive in cutting expenses," Swearengin said. "We reduced our workforce by 25 percent. We partnered with nonprofits to have them do things that really they could do better than the city with more efficiency. We privatized some non-essential government services. And we just fought tooth and nail to keep our city out of bankruptcy."

But when it comes to finances, Betty Yee, the Democrat, contends she’s the better candidate.

"I’d liken this office to the person who is minding the store," Yee said.

Her focus would be on "protecting our tax dollars," Yee said.

She is an elected member of the state Board of Equalization, serving the past 10 years as part of California’s tax commission.

“I believe my experience with state-level finances is what’s needed for the controller," Yee said. "I have deep knowledge of tax policy. Deep knowledge of state budgeting, certainly with respect to state audits and the whole cash management of the job."

And that job includes watching over California’s teacher retirement system – CalSTRS, which is deeply underfunded.

"We’re losing about $22 million a day," Yee said.

But she told KCRA 3 she is confident that California is taking the right steps to tackle that deficit.

"My hat’s off to the Legislature and the governor for tackling that this year," Yee said. "Whereby, there is a new funding formula for how to address the unfunded liability over a three-decade period."

But Yee admits that CalSTRS and CalPERS – the California Public Employee Retirement System -- need help.

The controller serves on the board of both retirement funds. But is there enough money in the pension funds to pay all the benefits today?

"No," Yee said. "Today, no. And that is really the work we need to work on. We have to take a long-term view on how to address these unfunded liabilities. We are a long-term investor. These benefits are not going to be paid out overnight."

But Swearengin is critical of the people in charge of California’s pension funds.

"First of all, I disagree with the majority of the CalPERS board who voted just a few weeks back to undermine the pension reform that was put into place by the Legislature and the governor," Swearengin said. "So, I would have taken a different position on that issue. We have to be very intentional and aggressive to deal with pension spiking and other things that are contributing to $217 billion of unfunded liabilities in our pension system.

"It’s a complicated problem and it will not be easy, and I guarantee you that people will be mad at me if I’m elected state controller. I’m going to have a tough stand."

But Yee countered that her state finance experience makes her uniquely qualified for the controller’s job.

“I was a former state budget director and really understand the role of the controller’s office," she told KCRA 3. "Managing our cash situation every day – being sure that our revenues are coming in as projected. Being sure that we can pay our bills on time. Financial audits of state programs to call out any wasteful spending or misuse of state funds. And so, those are all areas that I have deep knowledge of."

Swearengin countered, "I’ve been advocating a 90/10 budget plan. And what my proposal is that each year we go into the budget development process, we ought to be spending about 90 percent of our existing general fund revenues as paying for our existing obligations. And paying for today’s bills. But 10 percent of every general fund budget ought to be spent on paying things that help us in the future, paying down our unfunded liabilities.

"And if we maintain that kind of split without general fund revenues over the next 20 years, we absolutely could get out from underneath the enormous amounts of debt that we face today."

One area the two candidates agree on is increasing transparency in state government – and to continue showing the salaries of government workers on the state controller’s website.

"All of these employees are supported by taxpayer dollars," Yee said. "And I think for taxpayers to understand where their dollars are going, obviously salaries are one key component of what taxpayers fund."

"It’s an important step to make sure that people know we’re willing to be held to any standard," Swearengin said.

She told KCRA 3 that if elected, she’ll rely on her independent judgment.

”I evaluate every issue as it comes to me," Swearengin said. “I base my decisions on hard concrete data. I make that data available to the public and I take tough stands."

Yee said if she’s elected, "One of my priorities will be how we can incorporate technology to really help us be more efficient with respect to serving as the state’s chief fiscal officer."